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Alright kiddies. Today’s pick really isn’t a set it and forget it trade. Tonight the Bank of Japan is coming out with the Interest Rate Statement 11:00 pm EST. Now for those of you who watch our morning analysis know we stay away from the market during big news events. I think only the most experienced traders should trade a market right when a big news event is released. What I like to do is first see if the number being released is a surprise, then wait and see how traders react to it. I usually wait 30 minutes to an hour after the news is release before I even consider entering a trade. During that time frame I’m looking for the pair to whipsaw and then set the trend. Now if the move is strong I look to go long past 141.29 or short past 139.81 and aim for the next support or resistance line. If the move is weak that I look at those points for a retracement or reversal with a 10 pips target. With trades like this I keep a tight stop at no more than 20 pips from those entry points.

Like I said kids, not really a set it and forget it. You’re going to have to watch this one. With everything that’s happening with interest rates here and in the Asian countries I have a feeling traders are going to go long the Yen in the next 24 hours. Of course, I could be wrong, so let’s be prepared either way. Good luck and good trading!

This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.